AML checking bitcoin for "purity" and "dirt": why it is necessary and what services to use
Checking bitcoin for purity is necessary in cases where coins are obtained from potentially dangerous sources. Crypto exchanges with KYC have the highest security – they are highly likely to withdraw pure cryptocurrency, but with exchangers and private transfers, as well as bitcoin mixers, everything is much more dangerous.
Why check bitcoin for purity
, bitcoins that were previously involved in any criminal schemes are called "Dirty": hacker attacks, trade in illegal goods or services, terrorist financing, money laundering.
Many people still believe that Bitcoin, as originally stated, guarantees complete privacy and anonymity of users. Of course, wallets can be anonymous to one degree or another (they do not ask for registration or verification for use). But all transactions are documented on the public blockchain. Bitcoin is a completely transparent system, and technologies that track and analyze payments are developing rapidly. Therefore, if a dirty transaction is detected, for example, money stolen from the exchange, then it is not difficult for exchanges and other platforms to blacklist these assets.
What happens if such coins get to you?
You will not be able to trade it on reputable exchanges. After conducting an AML (anti-money laundering) check, the platform will identify the dishonest origin of funds and block them.
Along with the cryptocurrency, the account will most likely be blocked. A trial awaits you, during which you will have to prove that you yourself are not involved in criminal schemes.
There is a high probability of receiving fines for using dirty coins, even if you did not know about the problems with it.
That's why it's so important to be sure that the cryptocurrency is clean and not involved in anything illegal. Unfortunately, according to research, up to 46% of all cryptocurrencies in circulation may be involved in criminal acts in one way or another.
Checking Bitcoin
Where do dirty coins come from
The most common options are:
various scams and criminal schemes;
Buying drugs or other illegal goods on the black market;
money laundering through cryptocurrency;
theft from exchanges, wallets and other platforms.
The activities of AML services, which can be either independent or embedded in exchanges or other software, are aimed at detecting such cryptocurrency assets. Many AML systems supply services specifically to businesses so that verification is performed automatically via the API. At the same time, special attention is paid to the cryptocurrency received from bitcoin mixers or unregulated crypto exchanges.
In May 2021, the Marathon mining company announced that it had mined the first Bitcoin block in history that fully complies with US regulatory requirements. The company used a technology that did not process transactions with assets that were "marked" as dirty. Marathon is not the most influential miner in the world, but nevertheless, this step shows him as an innovator in the future integration of Bitcoin with global AML rules.
By the way, the coins that are generated by the network during the mining process are crystal clear by default, regardless of who mined them.
How to protect yourself from dirty money
Despite the huge number of dirty bitcoins on the network, the paradox is that few ordinary users own such bitcoins. After all, most people trade on large regulated exchanges.
There is another nuance.
Coins don't stay dirty forever. Suppose a hacker has hacked the DeFi protocol and keeps stolen coins in his wallet. They are considered "dirty". Sooner or later, a hacker will think about how to launder them. But as soon as the funds start moving from his addresses, they pass through many other wallets. Do they stay dirty after all this? Some experts believe not, once it is proven that they no longer belong to the perpetrator. If you look at it, almost all of us have Bitcoin in our wallet, which was once under the control of Silk Road (a site for drug trafficking and other illicit drugs, closed in 2013). But these bitcoins cannot be considered corrupted, they have already passed through a huge number of wallets.
SilkRoad
Some tips from experts on how to protect yourself from dirty BTC:
Avoid Bitcoin mixers and similar services. Mixers are usually used if the cryptocurrency is obtained from the darknet or is definitely associated with illegal activities. For an ordinary user, this is not necessary.
Get two wallets, one will have guaranteed clean coins, the other will have questionable ones. This way you will know from which wallet you can safely send coins to exchanges.
Trade only on regulated crypto exchanges where there is a KYC check. This way you can be sure that your contractors are also honest and have confirmed their identity.
And finally, there is another option: to use special software to check the purity of bitcoin. It quickly examines the history of a particular transaction and checks the databases to see if these funds were involved in illegal actions.
Programs and services for determining the purity of BTC
Website: https://getblock.net/
Application methods: via API, online on the website.
Price: from 30 cents per check.
Cryptocurrencies: BTC, ETH, XRP, BCH, LTC, BSV, ETC, XLM.
The service is implemented in the form of a blockchain explorer with the ability to verify any wallet or transaction. GetBlock makes it possible to launch decentralized applications by connecting to the selected blockchain and receiving help from qualified experts. A number of analysis tools are supported; a proprietary blockchain browser is in development. GetBlock is positioned as the most customer–oriented solution - a lot of attention is paid to technical manuals and support.
It is based on the Binance Smart Chain (BSC). Supported API interfaces for connections: JSON-RPC, WS, GraphQL, etc. Integrated AML transaction verification. Applications can also be combined with any third-party software.
2AMLBot
AMLBot
Website: https://amlbot.com/
Bot: https://t.me/cryptoaml_bot
Methods of application: bot in Telegram, online on the website
Price: from 30 cents per check
Cryptocurrencies: BTC, ETC, XRP, ETH, BCH, USDT (OMNI), BSV, LTC, ERC-20 tokens
AMLBot is one of the best and most famous programs for AML verification of bitcoins and other cryptocurrencies. It has been working since 2019, checking wallets and transactions for involvement in illegal activities.
The user specifies the crypto address on the website or in the Telegram bot and clicks "Verify". The process can take up to 30 seconds while the service searches through different databases and evaluates the final risk. The information is checked against 20+ sources. As a result, the result is determined – the wallet/transaction is assigned the category "risky", "suspicious" or "reliable". All the results are detailed, you can see the percentage of clean and dirty products.
Website: matbea.com/scoring
Methods of application: online on the website.
Price: 0.1 EUR (~10 RUB) per check.
Cryptocurrencies: BTC, LTC, ETH, BCH, USDT.
The Matbea wallet exchanger is interested in customer security and offers an online service for verifying blockchain transactions directly in the user's personal account. It is available to everyone who has sufficient funds on their balance sheet to pay for the verification. The process takes into account more than 20 criteria for the level of risk of illegal activity.
4Chainalysis
Chainalysis AML
Website: chainalysis.com/chainalysis-kyt/
Methods of application: online on the website
Price: on request
Cryptocurrencies: almost any
Chainalysis rightfully holds the title of a leader in the field of checking bitcoin and other cryptocurrencies for purity; it is used by professionals to verify transactions, addresses, and decentralized financial protocols. The output displays a wide range of parameters that can be used to assess safety and risks.
5AMLNode
AMLNode
Website: https://amlnode.com/
Application methods: API
Price: up to 1% per transaction
Cryptocurrencies: BTC, BNB, LTC, XRP, XEM, etc.
AMLNode is a web interface for business. Allows merchants to accept payments in cryptocurrency, while checking it for purity. The received bitcoins can then be instantly converted and withdrawn to a fiat account in euros. The solution integrates quickly and easily and provides a full-fledged web account with notifications and detailed statistics.
It is possible to enable anti-phishing, two-factor authentication and various convenient payment methods. The transaction fee within the service ranges from 0.5% to 1%, and AML verification is already included in the price. Compared to card processing, AMLNode has significantly fewer fees, and it is also easier and faster to use.
6Crystal Blockchain
Crystal Blockchain
Website: https://crystalblockchain.com/
Methods of application: online on the website
Price: on request
Cryptocurrencies: BTC
A professional solution for analyzing and tracking cryptocurrency transactions so that they meet the requirements of exchanges and financial institutions. Crystal Blockchain analytical and research tools are also used by government agencies.
Any business that wants to accept payments in cryptocurrency or otherwise interact with it can connect an API solution that analyzes transactions, evaluates them in accordance with the rules of a particular region and notifies if suspicious actions are detected.
Other software
Examples of AML service providers that are used by regulated exchanges or exchangers:
Elliptic Enterprises Limited (United Kingdom)
Elliptic Vault Limited (United Kingdom)
Chainalysis, Inc. (USA)
Coinfirm Limited (United Kingdom)
Neutrino srl (Italy)
FAQ
What is AML verification and KYC?
The first stands for anti-money laundering, and the second stands for Know Your Customer. AML includes anti-money laundering measures, which include KYC, that is, the collection of information about each client.
How do Bitcoins get dirty?
When they participate in money laundering, they steal from the stock exchange, they are used to pay for prohibited goods, etc. The blockchain is transparent, so it is not difficult to track the direction of coins.
Why is it dangerous to use dirty Bitcoins?
All regulated cryptocurrency exchanges verify incoming cryptocurrencies in accordance with AML principles. If it is found that the coins are dirty, there is a risk of funds and account being blocked, as well as fines.
What measures will help to receive only pure coins?
Ideally, you should use only regulated, reliable platforms and minimize interaction with bitcoin mixers and exchanges without KYC. It is recommended to immediately check the purity of bitcoin if these rules are not followed and the funds are received from unverified sources.
How to check Bitcoin for purity?
The following solutions help to track the purity of BTC transactions for both individuals and companies: AMLBot, Crystal Blockchain, GetBlock, AMLNode.
How much does it cost to check dirty Bitcoin and are there any free services?
Checks usually cost up to 30 cents per 1 piece, however, for the test, new users may be given the opportunity to check bitcoin for purity 1-3 times for free after creating an account.
How to withdraw dirty Bitcoin?
Search for services without built-in AML verification. These include, for example, the 60cek exchanger.
Conclusion
At first glance, it may seem that since bitcoin is interchangeable, then all BTC are the same and cannot differ from each other. Technically, this is true. But if you look at it from a different point of view, then the method of obtaining a particular coin has a certain influence. Bitcoins that a decent exchange will never accept are considered dirty. Sometimes they are sold at a discount on unregulated services. Conversely, some are willing to pay extra for crystal clear BTC, for example, freshly mined ones. It turns out that the origin of Bitcoin can affect its value. Anyway, the possession of dirty coins does not benefit anyone, and checking bitcoin for purity is an actual procedure for all categories of users.
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